The healthcare reform bill is far from settled, but its current state is placing great emphasis on how benefit products are designed, according to an industry analyst.
While legislation is a moving target, payers need tools that will serve both consumers and their employer groups, said Janice Young, research director for Health Industry Insights.
ChoiceLinx, a wholly owned subsidiary of Cigna with two primary product lines, is gaining traction in this market.
ChoiceLinx gives consumers access to a greater choice in benefits, said president David Gordon. "We've developed the technology to effectively manage ongoing and open enrollment," he said. Studies show that costs are reduced anywhere between 50 to 85 percent when enrollment is done online, he said. Consumers can view any benefit plan by any health insurance carrier and enroll through a portal. The online tool presents the right price to consumers based on their responses.
ChoiceLinx's experience in the marketplace, however, is contrary to what Forrester Research is seeing. The data from Forrester's September 2007 report on payers' consumer portals is still relevant, said Carl Doty, vice president and research director.
"We've continued to track the level of engagement among the biggest beneficiaries of these tools – consumer-directed health plan members," Doty said. "The level of engagement has dropped for two consecutive years, and I believe that's a direct result of the failure of payers' Web sites to give consumers what they need."
For employers, ChoiceLinx created an ROI tool, the Custom Benefit Builder, which lets employees customize plans, which then enables employers to determine what to offer based on employee choices. Lower cost can be realized by stripping out options and offering leaner benefits that more employees may want, Gordon said.
One employer group's employees wanted leaner benefits because they met their personal needs and saved them money, he said. These choices have produced a higher degree of satisfaction and a 14 percent increase with the benefit plan, Gordon said.
Young pointed out that it's difficult for employers to quantitatively understand employee choice during enrollment and over time, as well as understand the level of risk. Tools like those provided by ChoiceLinx help employers identify the most effective benefit plan for their business and their employees, balancing employers' need to manage cost and employee choice, she said.